Tax Relief Solutions for Los Angeles

Los Angeles represents a wide spread in population demographic, spanning from the Beverly Hills mansions to the surfer streets of Santa Monica. Regardless of income level, all L.A. residents are subject to falling behind in their taxes, especially considering California’s steep rates. If you’re living in Los Angeles and have found yourself in need of either state or federal tax relief help, Community Tax can help. We’re here to service the 310 area code and all of its neighboring cities with any tax-related need. We specialize in tax resolution and finding IRS back tax help no matter how large your outstanding debt may be. If you’re feeling the pressure of Uncle Sam knocking at your door, keep reading to learn how CTax can provide affordable tax relief – both in Los Angeles and beyond.

California and Federal Tax Relief

Living in California isn’t cheap. We’re not only referring to the expensive real estate (and associated property taxes) found in Brentwood and along Rodeo Drive; Los Angeles residents are also subject to high food costs, exorbitant gas prices, and steep state income tax rates – on top of their federal tax obligations. Take a look at the progressive rates listed in the chart below. Someone with an income of $600,000 will pay $73,800 in California state tax, which may or may not seem reasonable for such wealthy taxpayers. However, even those who rack in a modest income – say, $42,500 – will owe $3,400 in taxes for a given fiscal year.

However you look at it, thousands of dollars is a lot of money to set aside for a tax bill, which makes it unsurprising that so many Los Angeles residents come up short during tax season and fall into either state debt, IRS debt, or both. There are many different scenarios taxpayers may come to find themselves in need of tax relief help, but let’s take a look at the most common situations and penalties:

You Can’t Afford to Pay Your Tax Bill

Let’s say you’re a law-abiding L.A. citizen who dutifully filed their tax return, and perhaps expected a sizeable refund. As it turns out, you claimed too many allowances on your W-2 and didn’t withhold enough taxes from your monthly income. Now, you owe the government money, and since you weren’t prepared for this, don’t have enough readily-accessible cash set aside to pay your bill. If you can’t pay or won’t pay your tax obligation, the IRS will assess you with a failure-to-pay penalty. This results in a fee generally around 0.5 percent per month of your unpaid taxes. It begins accruing the day after your taxes are due and doesn’t stop until they are either paid off or capped at 25 percent.

You Didn’t File Your Taxes

For whatever reason, you neglected to file your tax return on time. Maybe you forgot, or life got in the way, but in any case the deadline came and went without your return having been submitted. In some cases, the IRS might file a substitute return on your behalf, and the only consequence you’ll face is forgoing the refund you would have received. In other cases, however, the IRS is not so keen on saving you money, and could decide to apply a failure-to-file penalty to your account. The penalty for failing to file your taxes is much steeper than failing to pay, as the IRS takes tax evasion very seriously – and at times may even prosecute it as a criminal offense. Unfortunately, even if tax evasion wasn’t your end game, and the reason you neglected to file was innocent, you could still face the failure-to-file fee of around 5 percent of unpaid taxes for each month or partial month your return is late. According to the IRS, the failure-to-file penalty is on average ten times more costly than the failure-to-pay penalty. If you fail to file and fail to pay, you can begin accumulating debt very rapidly with compounded penalties.

These are the two most common ways to find yourself in need of IRS tax relief, but there are plenty of scenarios that could lead to you owing the government money. Without seeking out IRS back tax help, unresolved debt can create a number of scary situations:

Tax Lien

A tax lien is a legal claim against your property to secure payment of your debt. These usually come into being when the IRS assesses a tax against you and sends you a bill that you neglect or refuse to pay.

Tax Levy

An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish your wages, take money from your bank account or other financial institution, seize and sell your vehicles, real estate, and other personal property.

Arrest

Although it sounds extreme, continuously neglecting correspondence from the IRS and ignoring your mounting debt could eventually lead to arrest and take you to Tax Court.

Tax Relief Solutions for Los Angeles, California

If you’re facing tax debt, don’t wait until your Hollywood property is seized or an IRS agent comes knocking on your 90210 doorstep. Instead, seek tax debt relief from Community Tax, and allow our professionals to steer you back on track. Our two-step program leads to peace of mind. We begin with a thorough investigation process by filing a Tax Authorization Information form on your behalf in order to gain access to a complete record of your tax account. We’ll gather all of the pertinent information pertaining to your tax liabilities while our team researches your financials and compares them against the IRS records. When we complete our investigation, we contact you with our findings and recommended course of action given your specific situation. Below are just a few ways CTax offers tax relief solutions to our Los Angeles clientele:

Following the investigation phase, step two of our tax relief program is the resolution phase. Here we gather more in depth financial information and generate supporting documents to present to the IRS and/or state of California (if applicable) for our proposal. Depending on how simple or complex your circumstance is, this process could last from one week up until one year, but we will contact you immediately following the completion of your resolution to provide you with all of the details. Looking to the future, we’ll provide you with all relevant information to make sure this problem doesn’t reoccur later down the road. We put a guarantee on our work, and will remain on file as your Power of Attorney to circumvent any complications moving forward.

L.A. Tax Relief Help from Community Tax

CTax is a nation-leading tax-service provider, helping not only Los Angeles residents but taxpayers across the country with all of their tax-based needs. The reason behind our success is our unwavering dedication to top class customer service. You can rely on us to be available during your entire resolution process to ask your dedicated practitioner any questions or request a status update on your case. Our goal is to not only provide tax relief and fix your current issues but to keep you tax debt free in the future. We’re happy to negotiate Offers in Compromise, and to put an end to garnished wages, but we also make ourselves available for tax planning services. Allow us to file your income tax return, and you could see a refund you never knew was possible. Our talented team of practitioners will make sure to check for every applicable deduction and tax credit so you can see the most money back. To date, we’ve worked with over 50,000 clients spanning from the West to East Coast, with over $300 million in tax debt resolved. Don’t let your debt compound another day; see what we can do to save your finances by contacting us today.